Property owners could see tax increase

Monday

May 31, 2010 at 11:03 AM

Daniel McBrideStaff Writer

HOUMA — A process that could lead to Terrebonne residents paying higher property taxes will begin Tuesday at the parish’s School Board meeting.The board must determine whether to keep two parishwide property taxes, or millages, at their current rate or raise them to the highest level approved by voters. Together, the two taxes bring in about $6.2 million a year. If the rates are increased, that would give the board an additional $308,000.Terrebonne schools Superintendent Philip Martin supports the increases to help cash-strapped public schools. The school system, the parish’s top employer last year with 2,690 full-time workers, is taking in less money because of falling sales-tax revenues and more spending, mainly in the form of increased costs passed down by the state.To balance its budget, the board last week passed a $187 million budget that cuts 65 part-time and 239 full-time jobs, including 124 teachers.“In the current financial situation, we need all resources that are due to us and that the voters have approved to us,” Martin said, calling for the tax increase.One tax generates money used to operate and maintain public schools. It’s currently levied at 3.68 mills and brings in almost $2.6 million a year. Because the first $75,000 of a Louisiana home’s value is exempt from taxes, this tax costs the owner of a $150,000 house $27.60 per year. Should the board increase the tax rate to the 3.86 mills approved by voters, the owner of a $150,000 house would pay $28.95.A special maintenance tax supports general school expenses. This tax is now levied at 5.15 mills, giving the board just less than $3.6 million per year and costing the owner of a $150,000 home $38.63.If the board increases this tax to 5.41 mills approved by voters, that same homeowner would pay $40.58.Should both increases be approved, the tax increase to the owner of a $150,000 home would be $3.30.Should the board decide to increase the tax rates, a multistep, months-long process begins. The board would be able to adopt the new tax rates no sooner than Aug. 17.But some board members have said the board should not pass its financial burdens onto the public.The board’s Finance Committee has recommended that the rates remain as is. That move was instigated by Finance Committee member Rickie Pitre, who said the board can save money elsewhere in the budget rather than increasing taxes.Board President Gregory Harding, on the other hand, said the board did not increase property taxes during its last opportunity, becoming the only tax-levying body in the parish to keep the rates down. But circumstances have since changed, he said.“This is a good time, with the dire need of the situation that we’re in,” Harding said. “This is something that we can do and we should do.”The board meets at 7 p.m. at 201 Stadium Drive in Houma. The meeting is open to the public.

Staff Writer Daniel McBride can be reached at 448-7635 or daniel.mcbride@houmatoday.com. Follow him on Twitter @BayouSchools.